Question about DD level

uptomyeyeballs

scottishpower_company_representative wrote: »

Hi uptomyeyeballs

I know exactly what you mean. Customer's tend to focus so much on the monthly Direct Debit payment to work out who is the cheaper supplier, rather than actually work out who is going to charge less over a 12-month period. I fully appreciate that times are hard and that a lot of people want to lower their monthly outgoings a much as they can.

If you were to do the same calculation with each supplier prices so that from April (starting with a zero balance) you worked out what monthly payment you needed to make to cover your annual consumption, you should see how much you can save.

Once you have done your figures, it can be put in simple terms, e.g. do I want to be charged £550 for 12-months consumption or do I want to be charged £500.00 for the exact same amount of consumption.

Let me know if you have any other thoughts on the matter (its a very popular discussion).

Kind Regards

Colin @ ScottishPower

Hi Colin. I know it applies to most utilty suppliers, i'm not just singling out SP. Most consumers get caught out because they don't really pay too much attention to the actual mechanics of it, or take time to digest the usage and cost details (why should they? comparison sites make it look so simple). Once you get onto the April-March cycle it isn't a problem, you'll then pay what the comparison sites indicated you'd pay every month to balance your usage, but people are falling foul of the 'zero in April' principle and failing to understand how their DD payment needs to be higher than the company they've just dumped. It isn't explained particularly well by anyone, or pointed out when signup takes place. I'm aware of it and what it means, but many will not be and will get a shock when their DD is hiked, even when they know their exact 12 month usage figures.

PS. Just supplied my opening electricity meter reading today, so hopefully should be live before the end of next week. Haven't been asked for a gas reading yet though.

the_bandit

As has been said before, the monthly direct debit scheme typically creates a credit during the spring / summer months leading then towards breakeven over the Autumn / Winter months.

As you have just transferred from another supplier you should have some credit from them so why not stick to your £42/month and just make a one off payment of £75 to your SP account so that come April your balance is at zero??

uptomyeyeballs

the_bandit wrote: »

As has been said before, the monthly direct debit scheme typically creates a credit during the spring / summer months leading then towards breakeven over the Autumn / Winter months.

As you have just transferred from another supplier you should have some credit from them so why not stick to your £42/month and just make a one off payment of £75 to your SP account so that come April your balance is at zero??

Yes, that's what i'll be doing bandit, as long as SP don't then reduce my DD.